Enbridge Inc. has received regulatory approval for its Bakken Pipeline project, adding much needed capacity out of the prolific and pipeline-constrained U.S. play.

The $180-million pipeline will move crude from the Bakken and Three Forks formations in Montana and North Dakota to Cromer, Man., via a new pump station at Steelman, Sask.

Were pleased to receive the boards approval of our Canadian Bakken project and to be able to move forward with this component of our broader expansion plans in the Bakken in both Canada and in North Dakota, Perry Schuldhaus, Enbridge vice-president of regional pipeline development, said today. The growth potential in the region is tremendous  with our existing infrastructure, and the proximity of our main line system, Enbridge is well positioned to capture opportunities created by increasing production. 

The Bakken oil formation extends from the United States into parts of Alberta and Saskatchewan, and has become one of the most active plays on the continent.

Pipeline companies have not been able to keep up with the flood of production which averaged approximately 400,000 barrels per day on the U.S. side from 2,000 bpd a decade ago.

The Bakken Pipeline would connect to the Enbridge Pipelines Inc. main line and would serve as a continuous, long-term source of supply to Eastern Canadian and U.S. Midwest markets, thus maintaining the long-term competitiveness of refineries in those regions, the board said in its decision.

The energy watchdog also allowed Enbridge Bakken to buy and operate a short line, the EX-02, from Enbridge Pipelines (Westspur) Inc.

Earlier this month Enbridge said it would be investing $145 million to ship up to 70,000 bpd Bakken crude by rail between 2012 and 2013 to U.S. Midwest markets as an interim measure while it completes its Bakken expansion.

In October Enbridge also announced a $90 million US Bakken Access Program, which included increasing gathering pipeline capacities, building additional storage tanks and adding truck access facilities in western North Dakota.

We have a Prime Minister (Harper) who is an economist, not a constitutional law professor/community organizer. He is interested in building the Canadian economy. In Canada, as in the USA, this is fairly easy. Just apply capitalism and watch it grow. When did Americans forget this principle?

5
posted on 12/27/2011 8:15:23 AM PST
by Former Proud Canadian
(Obamanomics-We don't need your stinking tar sands oil, or the jobs that go with it.)

The saddest part of this is that America is, in reality, an energy colossus. Oil, gas, coal, uranium, hydro sites are abundant in the USA, as in Canada. You just have to get your government out of the way.

14
posted on 12/27/2011 9:14:22 AM PST
by Former Proud Canadian
(Obamanomics-We don't need your stinking tar sands oil, or the jobs that go with it.)

I understand, but just the threat of this would drop pump prices...mark my words.

Probably not. Bakken Crude has been selling at a discount because of transportation difficulties in the region. Cutting those costs means that the producers will be getting market price for their oil instead of the split going to numerous middlemen (including trucking firms which have been hauling crude oil to Canada).

This won't be enough to completely eliminate the bottleneck, so there won't likely be any massive layoffs (crude haulers will still be needed), but it will address some of the problems with getting the oil to market.

It isn't likely that this will have a great effect on pump prices in the US.

15
posted on 12/27/2011 9:28:28 AM PST
by Smokin' Joe
(How often God must weep at humans' folly. Stand fast. God knows what He is doing)

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